Question

Refer to the financial statements for each of Danier Leather, Shoppers Drug Mart, and WestJet in Appendix II at the end of the textbook.

RequiredAnswer the following questions.Part 1The June 25, 2011, balance sheet for Danier Leather reports $15,061 (thousand) of PPE.a. What does the $15,061 (thousand) represent (i.e., is it the cost of the PPE)?b. Which generally accepted accounting principle (GAAP) requires that information in addition to the$15,061 (thousand) must be reported and where must it be reported?c. What amount did Danier report as depreciation expense for the year ended June 25, 2011? Part 2a. Shoppers’ balance sheet reports $1,767,543 thousand of property and equipment at December 31, 2011. What percentage is this of its total assets?b. WestJet’s balance sheet reports $1,911,227 thousand of property and equipment on the same date. What percentage is this of its total assets?c. Why might WestJet’s property and equipment as a percentage of total assets be almost twice that of Shoppers? Hint: Review the asset section of each company’s balance sheet.